South African State Pension Fund Lost 0.6% on Steinhoff Plunge
The South African state pension fund said it lost the equivalent of 0.6 percent of its entire portfolio because of the collapse in Steinhoff International Holdings NV’s share price and will insist on representation on a board committee investigating irregularities.
The Public Investment Corp. and the Government Employees Pension Fund remain “deeply concerned about Steinhoff,” the entities said in a statement emailed Wednesday from Pretoria. “Recent developments point to serious governance challenges.”
In addition to board representation, the PIC and the GEPF will insist on the appointment of at least two independent non-executive directors at Steinhoff and subsidiary Steinhoff Africa Retail Ltd., according to the statement. They also expressed “discomfort” with the lack of independence at the board, including the possible conflict of interest following Christo Wiese’s appointment as interim chief executive officer.
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